Arbeitspapier
What does peer-to-peer lending evidence say about the risk-taking channel of monetary policy?
This paper uses loan application-level data from a Chinese peer-to-peer lending platform to study the risk-taking channel of monetary policy. By employing a direct ex-ante measure of risk-taking and estimating the simultaneous equations of loan approval and loan amount, we are the first to provide quantitative evidence of the impact of monetary policy on the risk-taking of nonbank financial institution. We find that the search-for-yield is the main workhorse of the risk-taking effect, while we do not observe consistent findings of risk-shifting from the liquidity change. Monetary policy easing is associated with a higher probability of granting loans to risky borrowers and a greater riskiness of credit allocation, but these changes do not necessarily relate to a larger loan amount on average.
- Language
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Englisch
- Bibliographic citation
-
Series: IWH Discussion Papers ; No. 14/2019
- Classification
-
Wirtschaft
Monetary Policy
Pension Funds; Non-bank Financial Institutions; Financial Instruments; Institutional Investors
- Subject
-
monetary policy
risk-taking
non-bank financial institution
search-for-yield
risk-shifting
- Event
-
Geistige Schöpfung
- (who)
-
Huang, Yiping
Li, Xiang
Wang, Chu
- Event
-
Veröffentlichung
- (who)
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Leibniz-Institut für Wirtschaftsforschung Halle (IWH)
- (where)
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Halle (Saale)
- (when)
-
2019
- Handle
- URN
-
urn:nbn:de:gbv:3:2-108242
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Huang, Yiping
- Li, Xiang
- Wang, Chu
- Leibniz-Institut für Wirtschaftsforschung Halle (IWH)
Time of origin
- 2019
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